Luzon Rail Road Company organizes its three divisions, the North Luzon, Central Luzon and South Luzon Regions as profit centers. The CEO evaluates the divisional performance, using income from operations as a percent of revenue. The following quarterly income and expense accounts were provided from the trial balance as of December 31, 2020. Revenues - North Luzon Region P210,000,000 Revenues - Central Luzon Region 315,000,000 Revenue - South Luzon 285,000,000 Operating Expenses - North Luzon 136,735,000 Operating Expenses - Central Luzon 232,187,000 Operating Expenses - South Luzon 196,318,000 Corporate Expenses - Dispatching 16,500,000 Corporate Expenses - Equipment Management 108,500,000 Corporate Expenses - Treasury 42,500,000 General Corporate Officers' Salaries 86,000,000 The Company operates three service departments: The Dispatching Department, the Equipment Management Department, and the Treasury Department. The Dispatching Department manages the scheduling and releasing of completed Trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasury Department conducts a variety of services for the company as a whole. The following information has been gathered: North Luzon Central Luzon South Luzon Number of scheduled Trains 450 765 585 Number of railroad cars in inventory 4,375 6,125 7,000 Instructions: 1. Prepare quarterly income statements showing income from operations for the three regions. Use the column headings: North Luzon, Central Luzon, South Luzon. 2. Identify the most successful region according to profit margins. Round to two decimal places. 3. Provide a recommendation to the CEO for a better method of evaluating the performance of the regions. In your recommendation, identify the major weakness of the present method